Goods and Services Tax (GST) in India, the taxable event is the “supply” of goods or services. The concept of supply forms the cornerstone of the GST regime and determines when GST is levied on transactions involving goods and services.

The term “supply” is defined broadly under the GST law to encompass all forms of supply of goods or services made or agreed to be made for a consideration in the course of business. This definition includes various types of transactions, such as sale, transfer, barter, exchange, lease, rental, disposal, or importation of goods or services.

Key points regarding the taxable event of supply under GST:

1. Supply: Any transaction involving the transfer of goods or services for consideration falls within the ambit of supply under GST. This includes both tangible goods and intangible services.
2. In the Course of Business: The supply must be made in the course or furtherance of business activities. This implies that transactions undertaken for personal purposes or outside the scope of business activities may not constitute supply for GST purposes.
3. Consideration: Supply must be made for a consideration, which can be monetary or non-monetary in nature. Consideration includes any payment made or to be made, whether in money or otherwise, in respect of the supply of goods or services.
4. Taxable Supply: Not all supplies are taxable under GST. Only taxable supplies attract GST liability. Taxable supplies include both taxable goods and taxable services as specified under the GST law and subject to applicable GST rates.
5. Threshold Limit: Small businesses with aggregate turnover below the threshold limit prescribed by the GST law may be exempted from GST registration and compliance requirements for certain transactions. However, once the turnover exceeds the threshold limit, GST registration becomes mandatory.
6. Place of Supply Rules: The determination of whether a supply is intra-state (within the same state) or inter-state (between different states) is crucial for the application of CGST and SGST or IGST, respectively. Place of supply rules prescribed under the GST law govern the taxation of inter-state transactions.
7. Time of Supply: The time at which GST becomes payable on a supply is determined based on the time of supply provisions under the GST law. These provisions specify when the liability to pay GST arises, either at the time of supply, issuance of invoice, or receipt of payment, whichever is earlier.

the taxable event under GST is the supply of goods or services for consideration in the course of business. Understanding the concept of supply is essential for determining GST liability, compliance requirements, and the applicable tax rates on transactions involving goods and services.